MAXIMUM-LIKELIHOOD ESTIMATES OF A US MULTIREGIONAL HOUSEHOLD EXPENDITURE SYSTEM |
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| Authors: | Patrick Canning |
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| Institution: | US Department of Agriculture , Economic Research Service , Washington , DC , USA |
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| Abstract: | This paper applies the maximum-likelihood equation to a model that produces US regional household expenditure estimates using national-level data on average expenditures by type of household and regional data on the number of households by type. Empirical results follow the analytical properties of the model and demonstrate an impressive capacity to recover regional statistics. These findings are useful in applied regional studies since they demonstrate a general framework to assess the input data and the overall estimation model. |
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| Keywords: | Constrained maximum likelihood Household expenditures Hypothesis testing Multiregional Sufficient statistics |
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